Virtual IBAN providers facilitate easy, cost-effective and fast currency transfers across the borders. There are several benefits you can enjoy when you open an account with virtual IBAN. They include 100% remote account opening, a wide range of international currencies, physical and payments cards; both prepaid and debit cards. You can also open a crypto bank account that you can use to send and receive cryptocurrencies. Virtual IBAN providers also come with SEPA, SWIFT and low-cost cross-border transfers.
What is a virtual IBAN? An IBAN (International Bank Account Number) is a unique number that is used to identify in which country a bank is located and the account number of the recipient. Virtual IBANs are used to direct transactions to online accounts instead of a physical bank.
How to Select a Virtual IBAN Provider
There are factors that you need to consider when selecting a virtual IBAN provider. The reason why you need to select one carefully since some IBAN providers are very expensive especially if you have a business. Consider these factors:
- Eligibility. Some IBAN providers specialize with individuals or businesses in a particular category. For instance, it can be non-residents, expats, or EEA residents only. Likewise, businesses can be categorized into different niches depending on the type of business.
- Risks associated. Some IBAN providers can be open to low-risk or high risks clients. For instance, low-risk clients can be categorized to those in Europe while high-risk clients can be categorized to those from outside Europe. Also, fees payable will depend on how risky your business is.
- Services offered. Virtual IBAN providers offer a wide array of services. Among them are personalized IBAN numbers, multi-currency accounts, virtual cards and physical debit cards, foreign exchange and SEPA and SWIFT transfers.
- License issued. The license type an IBAN provider holds determines which services they can offer. The law requires that license holders state the specific license they hold on their website. This makes it easy to know what license they hold.
- Limitations and restrictions. You need to be sure about the features you are looking for. It is because IBAN providers gave different limitations and restrictions. Applicants come to know of these limitations once they have already opened an account. Some of the limitations include, no SWIFT transfers, cannot support transactions from some countries, no transfers from crypto exchanges, etc.
- Fees. The fees charged by virtual IBAN provides depended on the type of client and the risks associated. However, you can still find cheaper virtual IBAN providers dealing with high risky individuals.
What is IBAN discrimination? IBAN discrimination is when a bank or company doesn’t accept your IBAN because it’s not from the same country in which the bank or company is based. Find out what you can do about it.
How to Open an Account with Virtual IBAN Providers
The process of opening an account with virtual IBAN providers is 100% remote. You can open an account without visiting a bank premise or without having to interact with a human. However, the account opening process is similar to that of a traditional bank account. The speed is however swift compared to that of a traditional bank. To get the most out of virtual IBAN, then you need to select the best virtual IBAN.
Examples of Virtual IBAN Account Providers
Nowadays, there are many virtual bank account providers out there. You can open a virtual IBAN bank account with any of these services.
- Wise. It is available for businesses and individuals located in the EU and US.
- Revolut. It is available for businesses and individuals located in the EU, EEA, UK, Canada, Australia, Singapore, Switzerland, Japan, and the US.
- N26. It is available to individuals and businesses located in the EU and the US. The bank is licensed in Germany.
- Bunq. It is available to individuals and businesses located in the EU. The bank is licensed in the Netherlands.
- DynaPay. It is available for low and medium-risk businesses only located in the EU, US and Canada.
How Virtual IBANs will Help Your Business
There are many benefits associated with virtual IBANS to businesses. Among the benefits include:
- Saves on costs for cross-border transactions. If your business is involved in international B2B payments, the costs can be extremely.
- Virtual IBANs also help businesses by allowing consumers to make payments to digital wallets using fiat currency.
- Account opening with an online bank is easier and faster.
- Able to open a multicurrency IBAN account.
- You can open a non resident IBAN account.
Final Thoughts on Virtual IBAN Providers
To get the best out of virtual IBAN providers, you need to select one carefully. With the best virtual IBAN provider, you will enjoy cheaper costs, fast and efficient cross-border currency transfers. They also streamline back-office processes for businesses that help in automating reconciliation tasks.